Walnut Traders Urge Government to Cut Import Duties and Lower GST

The Nuts and Dry Fruits Council of India (NDFC) has asked the government to reduce walnut import duties, lower GST to 5 percent, and introduce a production-linked incentives (PLI) scheme. These changes could help boost domestic dry fruit farming.

India’s nut market is growing fast. It expands at 18 percent each year and could reach USD 12 billion by 2029. Over 90 percent of India’s walnuts come from Kashmir, but supply is struggling to keep up. Industry leaders believe tax reforms can help farmers compete with imports.

Industry Wants Per-Kilogram Import Duty on Walnuts

NDFC President Gunjan V Jain has proposed a per-kilogram import duty for walnuts, similar to almonds. Right now, India imposes a 100 percent import duty on walnuts, making imports expensive. Traders say this limits competition with cheaper walnuts from Chile and the United States.

The council recommends a flat import duty of USD 1,81 per kg. This would bring walnuts closer to almonds, which have an import duty of USD 0,42 per kg. Experts believe this would stabilize retail walnut prices and help local farmers sell more.

Call to Reduce GST on Dry Fruits

The council is also pushing for a lower GST rate on dry fruits, from 18 percent to 5 percent. High taxes make nuts and dry fruits costly for Indian consumers. Lowering GST would help more people afford these nutritious foods.

Reducing taxes could also encourage local farmers to expand production. Many traders believe this move is long overdue. Some staple food items have lower tax rates, and they argue dry fruits should get similar treatment.

Nut India Trade Show 2024 to Highlight Industry Trends

The Nut India Trade Show 2024 will take place from February 11-14 in Mumbai. Over 300 exhibitors from more than 50 countries are expected to attend. So far, 22 countries have confirmed participation.

Industry leaders will discuss key issues like tax policies, import duties, and supply chain improvements. India is the second-largest consumer of dry fruits after the United States. Policy changes in taxation and imports could impact global trade.

Conclusion: What’s Next for Walnut Prices?

If the government lowers import duties and reduces GST, walnut prices may stabilize. But if taxes remain high, domestic supply may not keep up with demand. This could keep imported walnut prices higher than expected.

For now, traders and stockists should monitor policy developments closely. Any budget changes could impact pricing and profit margins in the coming months.





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